Cheniere signs LNG SPA with Portugal’s EDP

LNG player Cheniere Energy said that its subsidiary, Corpus Christi Liquefaction, has entered into a liquefied natural gas sale and purchase agreement with EDP Energias de Portugal.

Under the SPA, EDP has agreed to purchase approximately 0.77 million tonnes per annum of LNG upon the commencement of operations of Train 3 of the LNG export facility being developed near Corpus Christi, Texas.

The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of approximately 13.5 mtpa of LNG.

Under the SPA, EDP will purchase LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto EDP’s vessels. The term of the SPA will extend for twenty years beyond the date of first commercial delivery of the third train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 3 are expected to occur as early as 2019.

“EDP, Portugal’s largest supplier of electricity and second largest supplier of gas, is the second customer to contract for LNG on Train 3 of the Corpus Christi Liquefaction Project,” said Charif Souki, Chairman and CEO.

Souki added that Cheniere entered into SPAs aggregating approximately 8.42 mtpa of LNG and are in discussions with additional counterparties for agreements that would commence with Train 3. The company expects to complete all necessary steps to reach a final investment decision and begin construction by early 2015.

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Press Release; Image: Cheniere